Medical Solutions sets price talk in $310 million credit facilities

By Paul A. Harris

Portland, Ore., May 31 – Medical Solutions Holdings, Inc. launched $310 million of senior secured credit facilities with price talk on Wednesday, according to a market source.

The deal includes a $35 million five-year revolver talked at Libor plus 450 basis points.

In addition there is a $200 million seven-year first lien term loan (B1/B) talked with a 450 bps spread to Libor atop a 1% Libor floor at 99, with 101 soft call for six months.

The deal also features a $75 million eight-year second lien term loan (Caa1/CCC+) talked at an 850 bps spread to Libor atop a 1% Libor floor at 98, with hard calls at 102 in year one and 101 in year two.

Commitments are due June 9.

UBS Investment Bank is the lead left bookrunner. Morgan Stanley & Co. and SunTrust Robinson Humphrey Inc. are the joint bookrunners.

Proceeds will be used to help fund the buyout of the company by TPG Growth. The company’s current owner, Beecken Petty O’Keefe & Co., will retain an equity stake in Medical Solutions post-close.

Closing is expected this quarter, subject to standard conditions, including regulatory clearance.

Medical Solutions is an Omaha-based provider of health care staffing solutions for hospitals.

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